Risk Aversion, Loss Aversion, and the Demand for Insurance - Archive ouverte HAL
Article Dans Une Revue Risks Année : 2018

Risk Aversion, Loss Aversion, and the Demand for Insurance

Résumé

In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of losses or gains relative to a reference point. Besides some comparative statics results, we discuss the links with first-order risk aversion, with the Omega measure, and with a tendency to over-insure modest risks that has been been extensively documented in real insurance markets.

Dates et versions

hal-02987006 , version 1 (03-11-2020)

Identifiants

Citer

Louis Eeckhoudt, Anna Fiori, Emanuela Rosazza Gianin. Risk Aversion, Loss Aversion, and the Demand for Insurance. Risks, 2018, 6 (2), pp.60. ⟨10.3390/risks6020060⟩. ⟨hal-02987006⟩
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